L'Oréal (OR) investor relations material

Executive summary

• Adjusted like-for-like sales growth reached 6.7% in Q1 2026, outpacing the global beauty market estimated at 4%.

• Reported sales were €12.15 billion, up 3.6% year-over-year, with like-for-like growth at 7.6%.

• Growth was achieved across all regions and divisions, with Europe as the top contributor and emerging markets posting double-digit gains.

• E-commerce sales grew in double digits, especially in emerging markets and Europe.

Financial highlights

• Reported like-for-like growth was 7.6%, with a -90 basis point adjustment due to IT transformation, resulting in 6.7% adjusted growth.

• Growth at constant exchange rates was 9.1%, while currency fluctuations negatively impacted sales by -5.5%.

• SAPMENA region grew 15.4%, and China delivered mid-single-digit growth, outperforming the local market.

• Volume accounted for about 40% of growth, with value growth supporting gross margin.

Outlook and guidance

• Confident in outperforming the global beauty market for the full year, expecting faster growth in 2026 than in 2025.

• Management remains optimistic despite geopolitical and macroeconomic uncertainties, particularly in the Middle East.

• Pricing actions may be considered if inflation persists, with other revenue management tools available.